After recently commenting on one of the numerous forfeiture reallocation lawsuits, the Labor Department is now seeking to become involved in another case. They have requested an extension to submit an amicus brief concerning a forfeiture reallocation lawsuit involving Honeywell International. In this case, the fiduciary defendants have successfully won their motion to dismiss, on two occasions, most recently last July, and this time with prejudice.
If you're a plan sponsor reading this, you might be thinking, "I’ll never find myself in that situation." However, the individual in question could very well be you. The case of Rick Case Enterprises -- a Florida automotive group that reportedly lost around 9% of its 401k assets during a recordkeeper conversion -- serves as a classic warning about the consequences of lax oversight. Here’s how this cautionary tale unfolded.
Six former and current employees filed a lawsuit against LifePoint Health on behalf of all individuals who participated in the company's 401k plan since August 15, 2018. The plaintiffs allege that LifePoint, its Board of Directors, and other fiduciaries breached their duties under ERISA by mismanaging the plan, failing to properly monitor it, and charging excessive fees. A federal district court judge in Tennessee has denied LifePoint's motion to dismiss the case, allowing the claims to proceed regarding the alleged improper use of forfeited 401k contributions.
A former equity partner at Husch Blackwell LLP has initiated a proposed class action lawsuit against the law firm, claiming it unlawfully withheld and misused employee 401k contributions. The case, filed in the U.S. District Court for the Western District of Missouri, alleges violations of ERISA for holding employee salary deferrals and using them to cover operational costs. The former partner argues that this practice deprived employees of potential investment growth and jeopardized the retirement plan. Husch Blackwell operates a 401k plan for about 400 participants, primarily funded through paycheck deductions.
Starting with plan years that begin on January 1, 2026, SECURE 2.0 introduces significant changes to the administration of catch-up contributions for specific higher-paid participants. Notably, plans are now required to implement mandatory Roth treatment for catch-up contributions made by HPPs. These new regulations present additional compliance, payroll, and communication challenges that plan sponsors should proactively address before the effective date. This article outlines the final rules and emphasizes key practical considerations for plan sponsors and administrators.
As the new year begins, business owners should focus on organizing their retirement plan reporting. It's time to inform your third-party administrator about any business changes from the previous year and provide complete employee census data for 401k compliance testing. While the information requests may seem repetitive, it's crucial to answer them thoroughly. Incomplete or incorrect data can impact test results, potentially leading to complicated corrections and penalties. Ensure your retirement plan is secure and compliant by providing your TPA with the necessary information to avoid issues during an audit.
During the first year of Trump's second term, the administration focused on key appointments and a government shutdown. Looking ahead, experts expect a busy year for the SEC and the DOL, particularly in expanding access to private markets. Trump signed an executive order to "democratize access to alternative assets" for 401k plans, including private equity and digital assets. The DOL is tasked with creating guidance by February 3, 2025, to amend current policies and address litigation concerns under ERISA. Despite the legality of including alternative assets in retirement plans, plan sponsors remain cautious due to fears of litigation and issues regarding fees, liquidity, and transparency.
The Eleventh Circuit has indicated a potential shift in its precedent, which could facilitate access to the courts for federal benefits lawsuits. In contrast, the Second Circuit dismissed a challenge regarding a union pension plan's focus on private equity investments. Here's a recap of these developments, along with two other notable updates in ERISA litigation from the latter half of 2025 that benefits attorneys should keep on their radar.
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Collected Wisdom™
Our researchers look for what they think are some of the better resources available to assist you in administering your plan or helping your clients. We group these resources in our COLLECTED WISDOM™ topics to make it easy for you to locate the information you need. Each item in a category contains a summary and date of when it was placed in the group.
We also maintain some older material in these collections for perspective and context.
